All Forum Posts by: John Hamilton

Hi Brie,

I'll be joining the group this coming Tuesday, finally. Thanks for the invite and hope to see you all there.

John Hamilton

Realtors are looking for commission. Wholesale doesn't sound like a lucrative offer for the Realtor and like @Dave Savage most don't know what you're talking about. However, most will respond to "investors" looking for good deals. Then, educate them and assure them they will get their commission at closing, which is when you get your fee. Or sell your buyer in using them as their buyer's agent and they get their commission that way.

You have to be creative when it comes to involving Realtors into Wholesale deals. It's hard enough just for fix and flips, short sales or REOs. I would work with the listing agent if you're having trouble finding a Realtor to join your cause, just know what you're doing...

@J V. 

It doesn't really matter the area, just that you're familiar with it.

Buy and hold, if you can get the funding, is ok. Most PL will not fund buy and hold unless the property value has some great, quick upside returns. And you need some skin in the game, from my experience. However, there may be someone out there willing to fund.

I was looking more for fix n flips or wholesale to build some quick capital using OPM. Then, eventually get some cash flow. Dealing with tenants, maintenance and property mgmt is overhead that you need to be prepared for in advance.

I would recommend a LOC if you're going to do that or some collateral-based bank loan/mortgage, after you purchase with OPM. Pay the PL off and hopefully have low-interest, long term loan. Your rent should be well above that loan/mortgage payment. If the numbers don't work for that property, move onto the next one.

We can talk privately once I get into town and see where we can agree to do certain JV. Draw up a plan and exit strategy. Then go looking for what we need to make that deal happen. Even if it is buy and hold. Not opposed to it. It's just more involved and hold some complicated risks and costs if not handled correctly.

John 

@Jay V. How is that area? I'm assuming you're talking about Elgin to Naperville?

Doing many deals? Inquiring minds want to know, lol. We'll meet up after I get into town next week.

John

Govt numbers skewing the actuals?

I'd like to see the numbers myself as I "feel" the foreclosure market is slowly rebounding in auction #s and REOs rising, from what I see. Though I'm not Nationwide, like ZZ Top.

And always, do your own research, especially in your area.

Welcome @Kevin K. ,

I'm moving to Deerfield, IL and looking to network with other local investors.

I've learned so much from this site, but never had the opportunity to really...well life got in the way a bit. Anyway, happy hunting in Chicago and Seattle. I have family out in Bremerton and Tacoma. Might be something there?

Move on. Queue that fat lady.

Here are some thoughts...Pros might have other sound advice.

1. You should bandit sign, flyer fly, yellow letter and do some internet marketing to get the deals you need. MLS is only for suckers paying full price. Unless you're a killer negotiator.

2. Network with other investors as the rehab partner if they fund and split profits 50%.  

Both of these strategies mean the deals come to you and you cut the competition down a bit.

Hi @Wayne Brooks 

I think is that if the seller sees the contract and you point out the stipulation you are assigning to your buyer, and he agrees, your buyer will be there with you if the deal is good. Of course, you have a non-circumvent contract with them. 

First thing is make the seller understand where you fit in. Most don't see it as an issue as you are bringing in a buyer for them. Pretty much what a buyer's realtor does. They get paid, too, don't they?

Like @Michael Quarles said, they want the money and why would they give you a cut since you're not even investing or risking anything, let alone buying anything. We know better though, right?

John

BP has a Bird Dog form I found years ago to help with contracting your services as the bird dog. It's between, you, the seller and the buyer. If I could attach it I would, but search for it. I'm sure it's still there. Anyway, I tried to attach it in this post.

And read all the informative articles and posts about both bird-dogging and wholesaling to see what piques your interest and how each one of those are performed.

BP is a big world and has tons of resources and folks to help you in your REI quest.

John

Very good information and great presentation, Lamar. Great advice given for someone who is starting out in REI and doesn't have the knowledge, capital or time for actual investor activities.

Might I suggest drawing up a simple contract called non-circumvent, non-disclosure for any bird-dogs working with clients and sellers. This keeps you in the loop, legally and may prevent either from cutting you out of your share.

Also, go for off-market or FSBO sellers who are motivated. MLS or realtor properties can already be located and are probably already seen by investors, especially if it's a great deal. Don't waste any time with unmotivated sellers. Move on to the next.

As Lamar mentioned, get contact information on all investors and their criteria when you first meet or talk to them. Sellers, too (they may have more properties or know someone who is selling). Even some investor-friendly realtors that focus on off-market, distressed properties are a great resource.

The thing is, if you can do it one time and bring a deal together, everyone involved will want to continue working with you. They may not even refer you to their investor buddies, as they wants those deals. So, you have to MARKET yourself, like Lamar said. You get out of it it by what you put into it.

Finally, save that money and use it to wholesale your first deal. If you have skin in the game, it's easier to get funding for double closing or fix-n-flips.

John